Yoma Strategic, Ayala unit AC Energy set up JV to invest in Myanmar power sector

Singapore-listed, Myanmar-based diversified group Yoma Strategic Holdings and Philippine conglomerate Ayala Corporation’s energy platform, AC Energy, have entered an agreement to establish a 50:50 joint venture that will see an investment of at least $30 million into Myanmar-based Yoma Micro Power.

The new JV plans to invest in Yoma Micro Power and will jointly explore developing around 200MW of
additional renewable energy projects within Myanmar including participation in large utility-scale renewable projects.

Post the investment and restructuring, which is planned for 2020, the joint venture is expected to hold at least 50 per cent of Yoma Micro Power.

Yoma Strategic currently holds 35 per cent in Yoma Micro Power, while Norfund and International Finance Corporation have 30 per cent each in the energy firm, it said in a statement.

Yoma Micro Power builds micro power plants and mini-grids to provide electricity to off-grid rural communities and telecommunications towers in Myanmar. Following the successful implementation of a 10-site pilot project in 2018, Yoma Micro Power is currently rolling out 250 micro power plants by end of 2019 and is expected to scale up to more than 2,000 sites by 2023.

“Supply of electricity is one of the largest opportunities in Myanmar and also one of the biggest bottlenecks for economic development… AC Energy’s international expertise in the renewable energy sector and the access to funding will be invaluable as we work together to service this huge, underserved market in Myanmar,” said Melvyn Pun, CEO of Yoma Strategic.

“This is a very meaningful investment for AC Energy, as we intend to participate in Myanmar’s renewables sector in a significant way,” added Patrice Clausse, COO of AC Energy Renewables.

Electricity consumption in Myanmar will grow at an average annual rate of 11 per cent until 2030 to achieve complete electrification in all households, which requires an expected investment of around $2 billion per year, according to World Bank’s estimates.

The local government is also planning to develop solar power to take up 5 per cent of the nation’s electricity. Coupled with a recent hike in electricity tariffs, it is becoming more attractive to invest in solar energy solutions to the commercial and industrial segments.

“The renewable energy sector is a scalable business that has the potential to generate a sizeable revenue stream with recurring cash flow to complement Yoma Strategic’s core businesses,” said Pun.

He added that Myanmar has one of the lowest electrification rates in Asia, with more than 60 per cent of the population without access to grid electricity, particularly in rural areas.

“There is a need to significantly increase generation capacity and build out last-mile distribution infrastructure, which Yoma Micro Power has embarked upon.”

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.